LAHORE: Orascom Telecom, parent organisation of Pakistan’s leading cellular company, is in talks to acquire a microfinance bank in order to enter the financial business and strengthen its appearance in the country.
The News has learnt that a delegation of Orascom comprising almost seven members including the former CEO Mobilink Zohair Khaliq is currently in Pakistan to look this deal. In this regard the first round of talk between the Orascom people and State Bank of Pakistan (SBP) was already held while the company has seriously been looking to acquire the microfinance bank in order to improve the mobile commerce services.
The team of Orascom has been looking into legal matters, regulations and other issues concerned in this regard.
Sources related to this development revealed that any microfinance type bank is always suitable for telecom company for successful service delivery mobile based banking. They mentioned that Telenor Pakistan had already acquired Tameer Microfinance Bank to promote its mobile based banking services and currently providing various financial services through mobile services.
In such scenario the Orascom is also keen to acquire a microfinance bank to focus on mobile based banking, they said adding that previously the Egyptian company had shown interest in Royal Bank of Soctland acquiring deal as well as to enter into the conventional banking.
They mentioned that in future financial regime the mobile banking would be the greatest tool of banking.
In mobile banking the conventional banking tools were not used like cheques and other instruments so the customer-base of mobile companies gets some basic facilities through mobile banking. They said the telecom companies have strong infrastructure in rural areas and by using this infrastructure.
They said globally the conventional banks avoid reaching themselves to rural areas due to high operational costs so the mobile companies have huge opportunities to avail this market for m-commerce, and Africa and Nigeria have huge success stories about it as over $10 billion transaction were made through mobile banking there.